According to the company, more customers bought the Amazon Kindle on Christmas day than actual books. Given that not many actually purchase anything on Christmas Day except from bargains and sales, this might not mean a great deal, but we get the drift: in fact, Amazon stated the Kindle to be 'the most gifted product' in the history of the company.

Now that means something, so is there any need for changes to the Kindle if it is doing so well? The answer is definitely yes, because anything standing still gets overtaken. In fact, over the next year or so there will be massive changes made to the e-reader market with a rash of competitors having developed new products that will be shipped from November onwards. Some of these will include innovations and features that will make the Kindle appear Victorian by comparison, so what is in store for the Amazon Kindle over the coming year?

The answer to that is that nobody knows, so we can only surmise what is in Amazon's mind. The iPad has given rise to a serious competitor, and the reaction of other manufacturing companies such as Dell, HP, Samsung and Toshiba to name just four is already being seen. Each of these is coming out with new machines of 7" and more, with 1024 x 600 screen resolution and e-reader capability. The iPad itself has its own iBooks, plus of course the Kindle application, although most for the moment are going with Apples own e-reader app.

Here are some of the things we believe that Amazon might introduce to the Kindle, either as tweaks or as a brand new machine with more functionality than just as an e-reader. Each of these is based upon existing competition and what we already know is in the pipeline from that competition for 2011.

Remove the Keyboard

The physical keyboard below the screen on the Kindle is redolent of the archaic. OK, many people might like it, but that is perhaps only a sense of sentimentality, as some were sentimental about the ring dial cradle telephones. Many kept them, but few are now sold. Amazon must step up to the base ready to face the competition with a modern look.

Removing the physical keyboard would certainly give a more modern and attractive look to the Kindle, and help sell it to the younger generation. There is a question as to the need for any more than a touch keyboard for an e-reader.

Introduce a Full Resolution Color Screen

In the current era of magazines and newspapers being made available to e-readers, the days of black and white e-Ink are over. Color is essential, and if Amazon wants to continue their dominance with the Kindle then they will have to modern up. E-Ink might keep the newspaper guys happy, but it won't keep the customers happy and that's what matters, so color is a must if the Kindle wants to be anything but a fringe limited functionality eBook reader in the future. As noted in the review "E-paper 2.0 And Fujitsu Has It In Color" (dbReaders), for now the FLEPia unit based on Fujitsu's ground breaking color e-ink looks to be the king of the hill in the color E-reader space, but expect others to challenge it soon.

Reconsider DRM

DRM (Digital Rights Management) is good in a way, in that it helps protect theft or piracy of eBooks, but some other form of protection should be devised whereby titles can be swapped between devices. This is particularly so in view of the bookclouds that are appearing, whereby titles can be read on any device such as an iPhone or Blackberry in addition to a dedicated e-reader. Although Amazon allows publishers to decide whether to apply copy protection or not, it would be a forward step to do away with DRM altogether, or at least to use a less restrictive form. Physical books get by without it.

Convert the Kindle to a Tablet Computer

Some people have suggested that Amazon convert the Kindle to a full-blown tablet computer and so compete with Apple head on. It is doubtful whether a company such as Amazon would be willing to do that since, while a dedicated e-reader fits in perfectly with their core business, a tablet computer would not.

If anything it is Apple that encroached on Amazon territory, not the other way about, and there appears to be no reason for a business involved in the publishing industry to become involved in computing. All Amazon should do meantime is to focus on improving the Kindle to offer color, a more attractive appearance and to render it easier for users that have purchased eBooks elsewhere to read them on the Kindle, and that might be enough to beat off the competition who are encroaching on their core business.

To do nothing at all would be commercial suicide because until now many have purchased either on looks or on functionality. Now that Apple and some others with the better looks are now producing the goods in respect of functionality, the Kindle must become reborn or it may die shortly after its proudest hour.